The dollar has neared a 14-week high after encouraging data from the US economy offset fears concerning the impact of the hurricane season.

This morning the dollar stood at 1.7554 to the pound and 1.1958 against the euro.

Figures released by the Treasury Department indicated that the US is continuing to attract investment, with August seeing $90 billion entering the country, well above the $60 million expected.

On top of this comments emerging from the Federal Reserve have hardened expectations that the interest rate could rise.

Federal vice chairman Roger Ferguson outlined his belief that the economy was "remarkably flexible and resilient".

"I believe that the outlook for the economy remains solid despite the devastating blows delivered to the Gulf Coast by Hurricanes Katrina and Rita," he commented.

Mr Ferguson said that with energy costs set to add momentum to inflation there could be a case for a rise in rates "at a 'measured' pace".

Meanwhile, Federal president Janet Yellen added her voice to the debate, saying the current rate of 3.75 per cent was likely to be at the lower end of estimates.